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ABC Company reports the following information on its 2017 end-of-year financial statements. Assume any increases/decreases to the Balance Sheet accounts were a result of cash

ABC Company reports the following information on its 2017 end-of-year financial statements. Assume any increases/decreases to the Balance Sheet accounts were a result of cash transactions.

What is ABC Companys Cash flow from investing activities?

ABC Company

Balance Sheets

On December 31, 20XX

Assets

2017

2016

Cash and Cash Equivalents

$84,000

$48,700

Accounts Receivable

53,600

50,000

Inventory

39,600

39,000

Prepaid Expenses

5,500

15,000

Equipment

206,000

200,000

Accumulated Depreciation

-126,700

-117,700

Total assets

$262,000

$235,000

2017

2016

Liabilities and Stockholders' Equity

Accounts Payable

$48,000

$49,000

Accrued Liabilities

44,000

42,000

Common Stock

10,000

9,000

Retained Earnings

160,000

135,000

Total Liabilities and Stockholders'

Equity

$262,000

$235,000

ABC Company

Income Statement

For the Period Ended December 31, 2017

Sales Revenue

$636,000

Cost of Goods Sold

240,000

Gross Profit

$396,000

Office Expenses

242,000

Depreciation Expense

9,000

Income from Operations

145,000

Interest Expense

0

Income before Income Taxes

145,000

Income Tax Expense

120,000

Net Income

25,000

$3,000
($6,000)
($9,000)
($15,000)
None of these answers are correct.

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